Ranting and Raving:Stocks Down,Bond Yields Up

Stocks continued their downward momentum on Monday.I see a lot of companies whose stocks seem to be in the wrong place.They want to come down,cautions CNBC's Jim Cramer.
The Fed has lost control of the bond market.Everybody has to readjust.What if the ten year Treasury goes to three?A 3% Clorox is not as good as a 3% ten year.It's one of the bond market equivalents that don't work.It's just breathtaking to watch the TNX,the Treasury Yield Index,when you don't have a bond terminal.
There's a couple of higher yielding stocks and MLPs,master limited partnerships.I'm watching Brazil and the riots.Are they still gonna stage the Olympics?You can't even make money if you bet against the Olympics.
Who is gonna say the magic word that Fed fund rates are gonna go higher?That's something we don't want to hear.I feel Fed Chairman Bernanke is boxed in the corner.He has become the world's largest bond trader.
Copper under three scares me.China does worry me.I went to see a meerkat exhibition.They were all huddled together,clearly worried about the bond market.
Whirlpool has a giant Brazilian market.This is one of those "let them eat cake" situations.They're building the Olympics and forgetting the people.I rented out one of my homes for July.I need the income because of the Brazilian market.
I want the highest quality here.The earnings coming out this week will be a good tell,the popular expert investor Jim Cramer said.
The TNX-10 Year Notes closed at 25.48 on Monday,up 0.34,or 1.35%.
Whirlpool(WHR),Clorox(CLX)

Asia This Day:Firm Support for U.S. Treasuries

Asian markets fell Monday morning from 1-3% in reaction to the downgrade of U.S. credit.Singapore dropped 3.36%,and Hong Kong lost 2.95%.Nonetheless,Asian investors stood by U.S. bonds.Following an emergency meeting,South Korean officials reaffirmed their support for U.S. Treasury bonds.
Taiwan said the downgrade would have no direct or immediate impact.Hong Kong was sticking to its previous policies.Japan said it had not lost trust in Treasuries.Russia said U.S. Treasuries were reliable and it would not be reviewing its investment policy.
UBS said 70% of its clients indicated they would hold onto their U.S. bonds;30% would even increase their holdings.
Australian Treasurer Wayne Swan said Australia faces the challenges from a position of strength.Prime Minister Julia Gillard reassured the nation that Australia could handle the current instability.After all,Australia was the only developed country that did not go into recession during the 2008 financial crisis.
France questioned Standard&Poor's judgement in imposing the downgrade.All the same,U.S. stock futures were down precipitously Sunday evening,warning of a volatile Monday session ahead.
Singapore saw mostly cloudy conditions Monday morning.It was 86F,with winds S at 5 mph.The humidity was 70%.
Australian Adam Scott won the World Golf Championships Bridgestone Invitational in Ohio on Sunday.It was the 31-year old's eighth career victory on the PGA Tour.

Gross Sees Limitations

Bond expert Bill Gross of Pimco thinks the Federal Reserve will cut short term interest rates to two percent,but there's a certain point beyond which it doesn't help the economy.Lower and lower interest rates produce a weaker and weaker U.S. dollar,causing global inflation.The bond markets on a global basis are afraid of inflation.U.S. Treasury bonds are perhaps the most overvalued asset in the world.Mr.Gross likes corporate bonds with AA or AAA ratings,such as General Electric(GE) or JP Morgan Chase(JPM).